After Oklo (OKLO) won a Department of Defense contract on Wednesday to supply power to an Air Force base in Alaska, analysts from Wedbush said the nuclear energy startup is set to be a "clear leader" as demand for nuclear energy increases.
The analysts lifted their price target to $75 from $55 previously, as they said the nuclear energy industry recently got a "significant tailwind" from President Donald Trump's executive orders signed last month.
"The AI Revolution is driving significant demand for clean energy to power AI initiatives with necessary computing power expected to grow 10x by 2030," the analysts wrote. They said Oklo is "in a great position to capitalize on this elevated demand and differentiate itself from competition with its attractive build, own, and operate business model."
Oklo and other nuclear stocks have been lifted over the last year as projections have grown for the power demand that an increasing number of data centers will require.
The Wedbush analysts said that Wednesday's announcement provides another avenue for Oklo to generate revenue, as the Department of Defense could give the company future contracts for its smaller "powerhouse" reactors to power other military bases as it looks to quadruple nuclear energy production.
After a nearly 30% rally to a record close of $68.03 on Wednesday, Oklo shares were little changed on Thursday. They have more than tripled since the start of the year.
